Best Auto Insurance Companies: Compare Coverage and Costs

The best car insurance companies offer competitive rates, comprehensive coverage options, and stellar customer service. When you need to file a claim, your car insurance company should be fast, responsive, and on your side—with technology that makes the process easy and convenient.

Thinking it’s time to switch from your current car insurance provider? We’ve rounded up the best auto insurance companies based on their prices, customer reviews, and range of coverage options.

Reviews of the top auto insurance companies

Below, we’ve provided a list of the best auto insurance companies. We made our decision based on various factors, including rates, coverage options, app usability, financial stability, and customer reviews.

• Best overall: Progressive
• Best for financial strength: GEICO
• Best vehicle repair benefits: Nationwide
• Best safe driving benefits: Allstate

Progressive

GEICO

Nationwide

Best Vehicle Repair Benefits

4.3 _/5

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Why it’s one of the best

Nationwide offers comprehensive coverage options. Its “On Your Side” review process helps policyholders get the best coverage for their needs. Nationwide also offers various discounts, enhancing its value proposition.

• Comprehensive coverage options
• “On Your Side” review process
• Various discounts available

• Higher-than-average premiums
• Limited availability in some areas

Types of coverage

• Vehicle
• Medical
• Liability

Allstate

Best Safe Driving Benefits

4.2 _/5

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Why it’s one of the best

Allstate is a well-established insurer known for its comprehensive coverage options and robust local agent network. It offers a variety of discounts and innovative features, such as the Drivewise program, which rewards safe driving.

Allstate’s strong financial stability and customer support make it a top contender in the auto insurance market.

• Comprehensive coverage options
• Robust local agent network
• Variety of discountsInnovative features, such as Drivewise

• Premiums can be higher than average
• Mixed customer satisfaction ratings

Types of coverage

• Vehicle
• Medical
• Liability

How much does auto insurance cost?

The average cost of car insurance in 2024 is $214 a month, or $2,568 a year, according to recent Insurify data. This is for a full-coverage policy for the typical driver. Liability-only insurance, which we don’t generally recommend, is much cheaper: $105 a month or $1,260 a year.

Car insurance costs vary depending on several factors, including:

• Your age
• Your gender (in some states)
• Where you live
• What car you drive (and how much you drive)
• Your driving record
• Your credit score (in some states)
• The coverages you choose

You can keep costs down by finding car insurance discounts (such as car and homeowners insurance bundles), participating in your insurer’s usage-based insurance program (also called telematics), and shopping around for a new car insurance policy once every year or two.

In 2023, rates shot up by an average of 24%, far outpacing inflation. Even as inflation cools, we should expect car insurance rates to keep climbing as insurance companies struggle to make up for their huge underwriting losses over the past few years.

Several factors contribute to the rise in auto insurance costs, such as:

• An increase in severe weather events
• Large increase in repair and replacement costs
• Large increases in medical costs
• An increase in distracted driving

How to choose the best auto insurance

Buying car insurance doesn’t need to be stressful. Let’s break it down to the core factors to consider to get the best auto insurance for you:

Understand the terminology

Try to grasp basic car insurance terms before paying for a product you don’t understand. Start by researching your state’s minimum insurance requirements, and then think about additional coverages you might want.

Coverage types to research include:

• Uninsured and underinsured motorist
• Medical payments and personal injury protection
• Collision and comprehensive

Compare apples to apples

If you’re trying to find the cheapest car insurance on the market, you’ll want to compare quotes from several companies. But for a fair comparison, make sure you’re looking at policies with the same:

• Coverage limits
• Deductibles
• Optional coverages
• Discounts applied

If you compare multiple insurers, but the coverage limits and types of coverage are different, you won’t get a real sense of which one is cheaper.

Look at customer reviews

Knowing whether other paying customers are happy with the auto insurance company is important. Consult mobile app reviews to get a feel for how user-friendly the app is, and read customer reviews online.

You can also research the insurance company’s NAIC rating; this helps you see if the insurer has average, above-average, or, ideally, below-average levels of customer complaints. J.D. Power’s annual U.S. Auto Claims Satisfaction Study is also a solid indicator of whether customers have positive or negative perceptions of an insurer.

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How to get the best auto insurance rates

With the cost of auto insurance continuing to rise, you’ll want to pull every lever you can to get lower premiums. Here are a few ways to get the best auto insurance rates:

Shop around

First, we recommend comparing car insurance quotes from multiple companies. Switching insurers every year or two can help you save money on car insurance. 

However, if you bundle your auto insurance—say with homeowners, renters, or life insurance—and you get a bundle discount, you could lose your discount. So double-check with your current insurance provider before you make changes.

Erin Kinkade

CFP®

Your current insurance company may offer a loyalty discount, but it often can’t compete with the lower rates other insurers will tempt you with to make the switch.

Look into discounts

Car insurance discounts can help you save money on your auto insurance premiums. Here are some of the best discounts to consider:

• Bundling: You can bundle your auto insurance with another policy at the same company. Homeowners or renters insurance are common bundles, but you may also be able to bundle life insurance or pet insurance.
• Multicar: If you have more than one car on the same policy, you can usually get a discount.
• Pay-in-full: If you can pay your six- or 12-month premium in full instead of in monthly installments, your insurer may offer you a deal.
• Paperless: Switching to paperless billing might get you a small discount on car insurance.
• Safe driving: Insurers may reward you with lower rates if you go multiple policy periods without any accidents. In some cases, they may also offer discounts if you complete a defensive driving course.
• Usage-based discounts: Many auto insurers have optional programs you can enroll in that track your driving behaviors (often through your smartphone). You should qualify for a discount if you’re a good driver (no speeding, no hard braking, etc.).
• Affiliations: If you belong to a specific organization or employer, you may be eligible for a discount on your car insurance.

Adjust your coverages

Raising your deductible means you’ll pay more out of pocket before coverage kicks in when you make a claim, but it can also reduce the monthly or annual cost of your car insurance. You can also reduce your coverage limits to cut costs.

In addition, consider dropping optional coverages that may not be worth the price tag, such as rental car reimbursement and roadside assistance. If you have an old car that isn’t worth much, dropping comprehensive and collision coverage may even make sense.

Our expert’s advice on choosing appropriate liability limits

Erin Kinkade

CFP®

Choosing a policy with minimal coverage because it’s the lowest premium could result in a large financial burden if you’re liable for an accident damaging property—someone else’s or your own—or injuring another individual. Large out-of-pocket deductibles likely apply, and you might need to pay out of pocket for another’s vehicle or your own. I only recommend choosing the lowest liability limits required for a vehicle you don’t drive but that requires minimal insurance—for example, a collectible or a vehicle that is old, unreliable, rarely driven, and has a low replacement cost. One other scenario would be if you can absorb all costs associated with being underinsured, which is rare and typically not recommended.

How to apply for auto insurance

You can always work with an agent in person if you prefer, but getting coverage online takes only a few minutes. Here’s how:

1. Select the best auto insurance company for your needs. As discussed above, you should always shop around and get quotes from multiple companies before making a decision.
2. Fill out the online application. You’ll need to share personal information, including your birth date and address, as well as information about your driving history and vehicle.
3. Customize the coverages. Determine which coverages you want. (The online platform should default to what’s required by law in your state based on the address you provide.) This also includes setting coverage limits and selecting deductibles.
4. Start the policy. Once you’re sure the policy is what you want, move forward with purchasing by paying the premium online. You might be able to download an app to access your digital insurance cards, but you can also have the company mail your insurance cards to your home.

FAQ 

Which insurance company has the best customer satisfaction?

The insurance company with the best customer satisfaction often varies by region and year, but Amica Mutual consistently ranks high in customer satisfaction surveys. It was the highest-rated auto insurer for 2023.

According to J.D. Power’s annual auto insurance study, Amica earns top marks for customer service, claims handling, and overall satisfaction. 

What insurance company is best for cars?

The best car insurance company depends on individual needs and preferences. While we think all the companies mentioned above are top contenders, many consider GEICO one of the best due to its competitive rates, extensive discount options, and user-friendly online platform. 

For those seeking exceptional customer service, Amica is a top choice. The best insurance company for cars will depend on your coverage needs, budget, and personal preferences.

What is the average car insurance cost?

The average car insurance cost in the United States varies based on several factors, including the driver’s age, location, driving history, and the type of car insured. 

As of 2024, the national average annual premium for full-coverage car insurance is approximately $2,568, while the average annual premium for a liability-only policy is around $1,260. 

These figures can vary depending on individual circumstances and the specific insurance provider.

How we chose the best car insurance companies

Since 2019, LendEDU has evaluated insurance companies to help readers find the best auto insurance. Our latest analysis reviewed 168 data points from 14 companies, with 12 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Higher star ratings are ultimately awarded to companies that offer excellent, customizable coverage. This includes offering online eligibility checks, cost transparency, comprehensive coverage, and unique benefits that protect drivers and their vehicles.

Recap of the best car insurance companies